STI up 1.8%: Out of the woods?

The STI closed 1.8% higher and recaptured the 3,000 points support. Whether 3,000 points is now support once more, actually, needs confirmation. It is too early to say that we are out of the woods.

As most of my investments in the stock market are not index linked counters, I am not too bothered by the STI apart from the possible spillover effects it could create.

1. AIMS AMP Capital Industrial Trust: My buy queue at 20c was not filled. I am continuing the buy queue at 20c for next Monday. Although price closed at 20c today, most of the 8,840 lots transacted today were Buy Ups at 20.5c, 6,913 lots to be exact. 20c is a very strong support both technically and fundamentally.

2. Cache Logistics Trust: I am still waiting to buy this at 92.5c. It did touch 92.5c recently but my Buy order was not filled. So, am I going to buy at a higher price? Nope. I will continue to wait at 92.5c since technical weakness is still apparent.

3. CapitaMalls Asia: Closed 1c higher. Technically very weak. See if it captures support at $1.83. The counter closed at $1.77.

4. First REIT: For anyone who is seeking exposure or increasing the weight of his long exposure to this REIT, 72c support has held up and could be a fairly safe entry. However, if 72c breaks, the next support is at 69c. If a possible 3c paper loss is acceptable, why not?

5. Genting SP: Similar to CapitaMalls Asia, this counter must capture its previous support in order to set investors' minds at ease. That would be at $2.00. The counter closed at $1.95.


6. Golden Agriculture: Regained support at 63.5c. This needs confirmation in the next session but it is a shot in the arm for investors. Closing below support recently could just be a whipsaw.

7. Healthway Medical: Closed at 14c which was support. This could now be resistance. Technically and fundamentally weak, I would only go long on this counter for quick trades for now which is what I have done before.



8. Saizen REIT: Buy ups at 16c happening. 15.5c remains a very strong support, technically, and is a fairly safe entry price for any interested investor.

9. ASTI: I increased my long position and I shared this on Twitter yesterday. EPS: 2.6c. NAV: 18c/share. Dividend: 0.7c/share. I bought more at 10c/share. It was my only "update" yesterday in my blog. If you are not following me on Twitter yet, you might want to do so for my short "blogs".

OK, hungry for dinner now after an afternoon nap, recovering from hours on the beach. Have a wonderful weekend! :)

STI climbs 1.8% to 3,025.16 at closing
Friday, 25 February 2011

© 2011 - The Edge Singapore

Golden Agriculture and First Resources.

Golden Agriculture is closing in on the 100dMA as it ended the day at 71c today on high volume. We could very well see the support provided by the 100dMA tested at 70c in the next session. If it should break, next support could be found at 66c where the rising 200dEMA would be approximating soon.  The 200dEMA, being a long term MA, should be able to provide a much stronger support in case of further decline in price.

The MACD is falling in negative territory. Both MFI and RSI are also declining in overbought territories. The OBV shows clear distribution ongoing. The time to buy some shares in Golden Agriculture could be near.

First Resources declined with a vengeance yesterday on extremely high volume but volume dried up today as price declined another 4c. Could price decline further next week? It certainly could but with volume drying up, drastic price decline similar to what was witnessed yesterday is less likely to happen again.

For anyone thinking of initiating a long position in the counter, the 100dEMA at $1.38 and the 100dMA at $1.35, if tested, could be nice entry prices.

See analysis by DBS Group Research here.

First Resources drop a buying opportunity. Major shareholder Eight Capital sells 75 million ordinary shares and Citigroup places 15 million treasury shares held by the company at $1.48 each.
Thursday, 20 January 2011

© 2011 - The Edge Singapore

Related post:
Golden Agriculture: Looking to the 100dMA.